FOR BUYERS:
WEB BASED NPL
ANALYSER

Ideal for Investors that intend to purchase mortgage NPL portfolios but do not have time and
resources to analyse the complex, user-unfriendly, multi-asset excel spreadsheets, usually provided
by banks

We will do the hard work for you: we have technologies, expertise and resources. Our team of
dedicated professionals, with long terms experience in structured credit, risk management and IT
programming, can quickly transform unreadable excel spreadsheets into web based representations of
NPL portfolios with itemised visualizations, identification of web-based market data-points,
real-time, web-based valuations and extraction functionalities.

We will rapidly
convert unreadable
excel spreadsheets
data into:

Organised extraction and representation of loan-level data

Instant visualisations of underlying properties

Identification of market comparables based on market offers extracted for similar properties in the
same street/ area

We will allow you to submit informed offers, beat the competitors on time, substituting discretionary assessments
with algorithmic market value assessments based on comparables sourced from selected authoritative,
real estate portals.

Access to a diverse range of acquisition options and
re-financing opportunities

Benefits

Transparent, reliable and supportable loan data

Increased number of potential bidders

Reliable valuation and valuation assumptions

Usable for accounting and regulatory reporting

Positive impact on LGDs

Lower loss allowances within the forthcoming
IFRS 9 framework

Better loan servicing

Improved dialogue with auditors, rating
agencies and regulators

Valuation Vector

Implementation
Process

Valuation of Credit
Assets – Forthcoming
Challenges

In July 2014, the International Accounting Standards Board (IASB) issued the final
version of IFRS 9 Financial Instruments (IFRS 9, or the standard), which
introduces new impairment requirements based on an expected credit loss
model (“ECL”) thus replacing the IAS 39 incurred loss model.

The standard introduces two types of loss allowances:

1. 12-month ECL are defined as the “portion of lifetime expected credit losses
that represents the expected credit losses that result from default events on the
financial instrument that are possible within the 12 months after the reporting date.“

2. Lifetime ECL which are losses resulting from default events, weighted from the probability of that default occurring.

The standard implements the requirement for the entities to provide for the measurement of Lifetime ECL with respect
to a financial asset following the occurrence a significant increase in the Credit Risk Event. The standard does not
provide a definition for such event: banks will be required to adopt measurements and indicators for significant risk
changes on a collective and individual loan basis.

Banks are required to provide qualitative and quantitative disclosures under IFRS 7 to explain the inputs, assumptions
and estimation used to determine significant increases in credit risk of financial instruments and any changes in those
assumptions and estimates.

IFRS 9 requires the estimates of ECL to reflect reasonable and supportable information that is available
without undue cost or effort, including the information about past events and current conditions and
forecasts of future economic conditions.